They Just Hate Rich People | Michael D. Tanner | Cato Institute: Commentary

They Just Hate Rich People | Michael D. Tanner | Cato Institute: Commentary: "On the one hand, we are told that the rich spend their money frivolously. Perhaps some do, but this ignores the fact that frivolous expenditures often provide jobs and income for the rest of us. Back in 1990, for example, Congress decided to impose a 'luxury tax' on such frivolous items as high-priced automobiles, aircraft, jewelry, furs, and yachts. The tax 'worked' in a sense. The rich bought fewer luxury goods — and thousands of Americans who worked in the jewelry, aircraft, and boating industries lost their jobs. According to a study done for the Joint Economic Committee, the tax destroyed 7,600 jobs in the yacht-building industry alone.

On the other hand, we are told that lower taxes on the wealthy won't help the economy because the rich don't spend enough of their money."